Filing Taxes 2019, Pt. 1

Its 2019, the government has reopened, and the IRS is running at full capacity, guess what that means? Time to prepare your taxes and hopefully get the refund you deserve. However, in order to maximize your potential refund, there are some potential tax mistakes you should be avoiding.

First, be sure not to miss the new credit. There is a new credit that is applied strictly for dependents that has been introduced by the new tax law. This is a nonrefundable tax credit worth up to $500 for each qualifying dependent and begins to phase out at $200,000 in adjusted gross income or $400,000 for joint filers. Any dependent must have made less than $4,150 in gross income last year, and filer must have provided more than half of the person’s financial support. The dependent can be a relative, child 17 or older, or non relative who lived with you for the entire year.

Another common mistake is picking the wrong filing status. On the surface this may seem like an innocent mistake, but the reality is that it can cause a drastic flux in your refund. For instance, single parents should look to see if they qualify as head of household instead. Additionally, families going through divorces should look toward married filing separately. These small differences can help your refund.

If you have questions about filing or need help with your taxes, contact our professionals at the Center for Financial, Legal & Tax Planning, Inc.